As it prepares to go private, InSpecs results show impact of tough backdrop

There was a flurry of news stories around British eyewear business Inspecs Group late last year as unsolicited bids and speculation that Safilo would buy it made headlines. On Wednesday however, the key news was the company’s annual results for 2025.

They may be the last result it reports as a stock exchange-listed business with investors set to take it private. More of that later. For now, it reported group revenue of £191.7 million, down from £193.3 million, which it said “remained resilient despite continued macroeconomic and geopolitical uncertainty”. Group revenue on a constant currency basis was £193.4 million.

The company makes eyewear under its own brands as well as for Barbour, Joseph, Henri-Lloyd, Liberty, Lyle & Scott, Superdry, Bradley, O’Neill, Ted Bake, Viktor&Rolf and more.

Its gross profit margin fell to 51.7% from 52.4% and underlying EBITDA was down to £17.7 million from £19.5 million. Operating profit before non-underlying items was £5.7 million, down from £5.9 million.

And the reported loss before tax of £0.2 million contrasted with the profit before tax of £1.6 million the year before. Statutory results were affected by a number of non‑recurring items associated with portfolio simplification, restructuring activity and discontinued operations.

Eyewear unit volumes increased to 11.5 million, “underscoring the ongoing relevance of our brand portfolio and the breadth of our customer relationships across both large retail groups and independent optical customers”.

CEO Richard Peck said “revenue was stable… and eyewear unit volumes increased, reflecting disciplined execution across our global operations and the enduring strength of our brand portfolio and customer relationships.

“The successful ramp‑up of our Vietnam manufacturing site has enhanced our operational resilience, improved cost competitiveness and positioned the group well to mitigate ongoing supply chain and trade‑related risks.

“During the year we took further actions to simplify… including the closure of the Norville lens business.

“Inspecs has entered 2026 with a simpler structure, a clearer strategic focus and a more resilient operating platform… The actions taken in 2025 provide a strong foundation for operational improvement, margin recovery and sustainable long‑term value creation.”

Takeover distractions and US tariffs

The company also said that despite all the distractions of the various unsolicited offers received for the group and the requisite due diligence processes, it “performed robustly in a difficult consumer environment. While sales have been under continuing pressure, especially exports to the United States as a result of the additional tariffs, costs have been tightly controlled and the group delivered full-year results in line with the market guidance given in the final quarter of the year”.

The small dip in revenue was blamed on the impact of the tariffs and changes in US government policy. And the gross margin fall was attributed to product mix and inflationary pressure.

But on the plus side, the newly expanded Vietnam factory continued to increase output during the year with revenue growing from £11.6 million in 2024 to £12.8 million. Sales in the first quarter of 2026 were “significantly ahead of” Q1 2025.

For the rest of 2026, it said its vertically integrated business model “continues to offer significant opportunities for operational efficiency. The integration of past acquisitions is now complete, delivering synergies that are contributing to both revenue protection and margin improvements. Furthermore, our investment in sustainable production methods reinforces our leadership in ethical and environmentally responsible eyewear solutions”.

It has seen an “encouraging start to 2026, particularly within the frames and optics division, with sales and order inflow to the European markets ahead of Q1 2025”. Sales to the US market remain in line with board expectations and the group is on track to deliver its expected results for 2026.

Going private

As mentioned, the company was the subject of takeover offers last year and while the rumoured Safilo buy didn’t happen in the end, Safilo did increase its stake early this year while an investment vehicle is also planning to take it private.

On 20 February, Bidco 1125 Limited (a vehicle indirectly owned by hospitality sector entrepreneur Luke Johnson and property investor Ian Livingstone) announced a takeover offer that went unconditional on 13 March and by late March it owned or had acceptances for almost 60% of the shares. The offer closes for acceptance on 15 May.

So it’s likely we’ll receive more news from the business at the end of this week. 

Assuming the company does go private, we’ll have to wait for Companies House accounts filings to see how it’s faring in future. Such filings tend to be later and less detailed than the stock exchange results reports.